Housing in South Africa

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Housing in South Africa includes both modern (contemporary) and traditional (historic) styles. [1] [2] The two most common forms of residences in South Africa are the detached house and the multi-unit building. These may be owned by an individual, jointly owned, owned in a sectional title format, or owned by a corporation. Homes may be lived in by their owners, or rented to tenants.

Contents

The country has a strong real estate market, especially in major cities (metros). Owning a home in South African society is aspirational, and in many markets is a form of investment. The rate of return on purchasing property varies greatly between the country's largest cities, with Cape Town having been the strongest-performing property market for many years. [3] [4] [5]

Home types

There are various kinds of homes in South Africa, with varying levels of popularity depending on the city and suburb. These include: [6]

For a building to be habitable (permitted for residential use), it must be zoned as such. In other words, residing in a commercial or industrial space is not permitted. Thus, municipalities zone land for various uses, such as residential-only, commercial-only, industrial-only, mixed-use developments, public parkland, national parks, and government-use.

Property prices

Average property prices vary greatly across major cities in South Africa, and are generally cheaper in rural areas. Within major cities, like Cape Town, Durban, and Johannesburg, prices again vary greatly between different suburbs and regions.

This variance is to the degree that one kind of property in a particular area can be priced significantly more than a different kind of property in another. For example, in the context of Cape Town, the city with the highest average property prices in South Africa, an apartment in a central, safe, peaceful Southern Suburb like Bergvliet is valued far higher than a detached house in a far-out Northern Suburb like Parow.

As of 2025, average prices (ranked in descending order) across some of the largest South African cities by population are as follows:

Average residential property prices (of all types) in South Africa's largest cities by population
CityProvinceMetro population (2022 Census)Average home price (ZAR)Year-over-year changeRef
Cape Town Western Cape 4.77 millionR2.23 millionIncrease2.svg 10.52% [7]
Pretoria Gauteng 2.92 millionR1.27 millionIncrease2.svg 6.72% [8]
Johannesburg Gauteng 6.19 millionR1.2 millionIncrease2.svg 9.09% [9]
Bloemfontein Free State 747,000R1.01 millionIncrease2.svg 3.06% [10]
Gqeberha Eastern Cape 1.15 millionR945,000Increase2.svg 5.11% [11]
Durban KwaZulu-Natal 4.23 millionR940,000Increase2.svg 3.86% [12]
Pietermaritzburg KwaZulu-Natal 839,000R930,000Steady2.svg [13]
Total-20.84 millionR1.26 million (Average)Increase2.svg 6.39% (Average)-

Cape Town

Cape Town has long been South Africa's strongest property market, with the city having annual home value increases of around 10%, which is well above other major cities in SA. In late 2024, Cape Town had an average property price of R2.23 million. Sellers in Cape Town often get their asking price, and the city is seen as a secure location to invest in the real estate market. [7]

In June 2025, it was reported in South Africa's Residential Property Price Index (RPPI) that Cape Town's property values had not only increased by significantly more than the national average, but had also increased by around 4 times as much as second-place Johannesburg's. [14]

To afford the average home in Cape Town, a salary of over R80,000 per month is required, which is significantly higher than in other provinces, and around 3 times the South African national average salary. [15]

Cape Town's leafy Southern Suburbs and picturesque Atlantic Seaboard command the highest prices for all types of residential property.

Features

Homes in South Africa are all equipped with the South African SANS 164 220/230V, 50 Hz AC plug sockets, and new builds are required to use the new SANS 164-2 (ZA plug) socket type. All houses receive a 220/230V supply, and the maximum wattage obtainable from a standard plug socket, at 16A, is 3,680 watts. However, houses may opt to have industrial-type outlets installed, for higher power output, such as to use for at-home DC charging for electric vehicles (EVs) at up to 22 kW.

With moderate climates, ranging from Mediterranean in Cape Town to Subtropical in Durban, SA does not have a system of piped gas for heating, nor is whole-home heating or cooling (ducted HVAC) common. Instead, homes are often built with pitched roofs, insulation above the ceiling, and make use of portable or wall-mounted heaters for winter, and multi-split heat pump air conditioners for summertime.

South Africa's homes are predominantly built out of brick, with exterior walls generally receiving two layers of brick, and interior walls receiving a single layer. This makes South African homes exceptionally durable, ironically in a region that is essentially devoid of major natural disasters. However, these materials are used as they are abundant, and homes are not viewed as disposable assets, but rather long-term investments.

Internet in South Africa is widespread, and many homes have a fiber optic connection. For those that don't, satellite internet is an option. In terms of entertainment, South Africans have shifted away over the years from using analog aerials for TV, and dish-type receivers for satellite TV, towards using smart TVs and TV boxes for streaming services.

Vehicle ownership is high in South Africa, and homeowners tend to park their cars at home. Many households have more than one car for personal use. Thus, many homes (detached and multi-unit formats) have garages and/or carports for protecting vehicles from the elements, and off-street driveways for additional parking space.

Home ownership

Current stats

A 2022 report showed that South Africa has 6.7 million residential properties, collectively worth R5.96 trillion. The most valuable area for housing stock is Cape Town. Around 70% of residents own the home they live in. [16]

Around 60% of residential properties in South Africa are owned by women, who also outnumber men as first-time home buyers. In 2025, it was predicted that women will initiate 70% of South African home purchases by 2030. [17]

Survey data

In a March 2025 Ipsos survey, 92% of South Africans agreed that everyone has a right to own their own home. This is significantly higher than the global average of 78%, and places South Africa among the top countries globally in terms of home ownership aspirations. 89% of South African renters said they would like to own their own home, which is higher than the global average of 71%. [18]

In the same survey, 72% of South Africans stated that they believe it is harder for their generation to buy or rent a home compared to their parents' generation, aligning with the global average. 81% of South Africans said property prices have increased in the past 12 months, while 82% expect prices to rise in the next 12 months. Furthermore, 84% anticipated higher rents in the coming year. [18]

When asked what the most important characteristics were that a home should have if they were to purchase it, South Africans responded with safety most commonly, seconded by a good location, while value for money was in a close third place. [18]

In terms of the type of home South Africans want, the survey showed that 34% of South Africans preferred to own a detached home in the suburbs (well above the global average of 19%), while 22% preferred an apartment in the suburbs (above the global average of 10%), and 16% preferred a detached home outside the city (below the global average of 22%). [18]

Purchasing process

South African homes can be sold privately or via a realtor. There are many locally based and international real estate agencies operating in the country, including RE/MAX, Seeff, Pam Golding, Fine and Country, Sotheby's, Rawson, Chas Everitt, Knight Frank, Century 21, and Just Property. There are two major online aggregator websites for properties across realtors; property24 and PrivateProperty.

Homes can be purchased for cash, via a mortgage from a commercial bank, or by some combination of both. Regardless, when this is done, a title deed needs to be transferred into the buyer's name, to prove ownership of the property. For this to happen, a lawyer specializing in property transfers (conveyancer) needs to action the transfer. [19]

The South African Revenue Service (SARS) charges a transfer duty to the seller during the purchasing process, which works as a progressive percentage. As of 2022, properties priced under R1 million attract no transfer duty. On the high end, properties valued at R11 million or more attract a duty of R1,026,000 plus 13% of the value above R11 million.

The seller also pays 14% VAT and realtor fees when selling. The latter may be as low as 1% or as high as around 8%. [16]

There are also legal fees involved with selling a home. The buyer pays the conveyancer, and may also end up paying a legal firm appointed by the bank, called a mortgage attorney, if they finance their home.

Generally, commercial banks require mortgage insurance to be taken out. At times, this is mandatory to take from the bank granting the loan. Buyers may also opt to take out property insurance with a private insurer, to protect their home in the event of damage, as well as home contents insurance, to protect their personal property stored inside the home from damage.

After this process is complete, the Registrar of Deeds signs the transfer, and the Deeds Office closest to the new owner keeps a copy of the title deed. A title deed can prove ownership of various kinds of property in South Africa, such as a freestanding home, sectional title unit, garage or parking bay, vacant land, or entire apartment building. [19]

Once an individual owns a property, they are able to apply for architectural plans, make alterations to it (such as renovations), rebuild the property entirely, apply to rezone the land, and sell the property to someone else whenever they wish, subject to any standard bylaws in their municipality. [19]

Foreigners are free to buy property in SA, subject to meeting the visa requirements to live and work in the country. [16] Mortgages are generally capped at 50% for foreign buyers, and all foreign purchasers need the approval of the South African Reserve Bank (SARB) before the transaction can take place.

Houses tend to sell within two months of being listed, however this varies a lot according to location. For example, certain suburbs in attractive property markets, such as Cape Town, have residential properties selling as quickly as within a few days of being listed, or even selling by direct viewing with a realtor, before being listed online. [16]

Rental market

According to the Q2 2024 TPN Residential Vacancy Survey, South Africa's average national vacancy rate was 5.57%, a significant reduction of 17.21% from the previous year. Certain provinces, like the Western Cape and Gauteng, have lower vacancy rates than the national average. [20]

Average rental prices vary significantly between provinces, with the highest average rent in the Western Cape, and particularly Cape Town, and the lowest average in the North West. [21]

Regulations

The South African housing market is regulated by strict legislation, which is set by the Department of Human Settlements, headed by the Minister of Human Settlements.

Construction and protection

South African building codes are governed by the National Building Regulations and Building Standards Act, 1977 (Act No. 103 of 1977), which enforces standards outlined in the SANS 10400 series. The act was most recently amended in 2008 (National Building Regulations 2008). [22]

These standards, developed by the South African Bureau of Standards (SABS), cover a broad range of construction aspects. It is a legal requirement for all new construction, and alterations to existing structures, to comply with these regulations. [23] [24]

The National Heritage Resources Act (Act 25 of 1999) provides for the protection and management of conservation-worthy places, and promotes proper management of heritage resources. [22]

Real estate practices

In terms of the SA real estate market, realtors and their processes are governed by the Property Practitioners Act (22 of 2019) and enforced by the Property Practitioners Regulatory Authority (PPRA). The act serves to protect consumers when they are selling, purchasing, leasing, hiring, or financing immoveable property, or a business undertaking. [25]

Among other things, realtors need to:

The Property Practitioner's Regulatory Authority (PPRA) is the regulating body for realtors in South Africa. It was established in 1976, via the enactment of the Estate Agency Affairs Act 112 of 1976 (EAAA). The act protects the interests of the public and ensures that realtors are compliant. [26]

Realtors can only act on a property if they have an explicit mandate from the seller, lessor, buyer, or lessee. Sole mandates, where a realtor has exclusive rights to act on a property, must be in writing, with specific terms and a fixed expiry date. [27]

See also

References

  1. ↑ "South African Architects Talk South African Architecture". JKDA. 25 May 2022. Retrieved 22 October 2025.
  2. ↑ "A Guide to Architectural Heritage in South Africa". Design Scape Architects. 1 March 2025. Retrieved 22 October 2025.
  3. ↑ "The Property Market in South Africa – What to Expect in 2025". ooba. Retrieved 22 October 2025.
  4. ↑ Lalaine C. Delmendo (25 June 2025). "South Africa's Residential Property Market Analysis 2025". Global Property Guide. Retrieved 22 October 2025.
  5. ↑ "Cape Town Southern Suburbs drive SA property boom as demand outpaces supply". property24. 16 September 2025. Retrieved 22 October 2025.
  6. ↑ "Understanding residential property ownership in South Africa". property24. 30 May 2024. Retrieved 21 October 2025.
  7. 1 2 Malcolm Libera (5 September 2024). "Dark clouds for Cape Town property and its residents". BusinessTech. Retrieved 15 May 2025.
  8. ↑ https://www.property24.com/pretoria/property-trends/1
  9. ↑ https://www.property24.com/johannesburg/property-trends/100
  10. ↑ https://www.property24.com/bloemfontein/property-trends/18
  11. ↑ https://www.property24.com/property-trends/alias/gqeberha/173
  12. ↑ https://www.property24.com/durban/property-trends/169
  13. ↑ https://www.property24.com/pietermaritzburg/property-trends/147
  14. ↑ "Cape Town continues to lead national house price growth". Caxton Network News. 30 June 2025. Retrieved 1 July 2025.
  15. ↑ Staff Writer (26 March 2025). "56 jobs that pay more than the average salary of R28,300 in South Africa". BusinessTech. Retrieved 15 May 2025.
  16. 1 2 3 4 Stephen Maunder (7 October 2025). "Real estate guide: buying a house in South Africa". expatica. Retrieved 22 October 2025.
  17. ↑ "Men vs. Women: How South Africans buy property differently". property24. 28 July 2025. Retrieved 22 October 2025.
  18. 1 2 3 4 "South African's dream of home ownership clashes with rising costs". Ipsos. 4 March 2025. Retrieved 21 October 2025.
  19. 1 2 3 "Title Deeds: Proof of property ownership". The Government of the Western Cape. Retrieved 21 October 2025.
  20. ↑ Malcolm Libera (12 October 2025). "Best news in 8 years for landlords in South Africa". BusinessTech. Retrieved 22 October 2025.
  21. ↑ Seth Thorne (17 May 2024). "The average rent in South Africa's provinces". BusinessTech. Retrieved 22 October 2025.
  22. 1 2 "National building legislation". The City of Cape Town. Retrieved 21 October 2025.
  23. ↑ Penny Swift & Janek Szymanowski. "SANS10400 - Homepage". SANS10400. Retrieved 21 October 2025.
  24. ↑ "Building Regulations - Homepage". Building Regulations. Retrieved 21 October 2025.
  25. ↑ Shaaheda Hoosain (1 May 2023). "The Property Practitioners Act: How can it assist you?". De Rebus. Retrieved 22 October 2025.
  26. ↑ "Estate Agents Affairs Board (EAAB or Board)". PropAcademy. Retrieved 22 October 2025.
  27. ↑ "PPRA - Homepage". PPRA. Retrieved 22 October 2025.
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